The Consumer Financial Protection Bureau’s (CFPB) new consumer disclosure forms, called “Know Before You Owe,” that will take effect Aug. 1, 2015, is designed to give the borrower more control over the mortgage loan process as well as add transparency to the transaction. Paul Trepeta of the National Association of Realtors, noting the CFPB retained the TILA (Truth in Lending Act) parts of the three-day waiting period, says, “This is a major change from what was proposed where even minor changes to the closing documents could have required a new three-day waiting period.” But he also acknowledges making the lender responsible for the documentation may lead to more cost and confusion for the borrower. In addition, as rismedia.com tells MHProNews, creditors and settlement agents are given sufficient flexibility “to arrive at the most efficient means of preparation and delivery of the Closing Disclosure to consumers,” according to the CFPB’s own words. The borrower must receive the Closing Disclosure at least three days before the loan closes; and any changes to to the Disclosure are permitted at closing without another three-day waiting period unless the lender changes the interest rate by more than one-eighth of one percent or changes the loan product. Also, the final rule does not apply to manufactured home loans, reverse mortgages, closed-end consumer mortgages or home equity lines of credit.
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